Could the Worst of the Recession Be Over?

July 06, 2011

The housing industry studies such stats as unemployment rates and bankruptcy filings to determine the state of the economy and predict home-sale futures.

Experts believed the unemployment rate would slowly come down this year after averaging 9.6 percent last year, and it has. Illinois’ May rate, at 8.9 percent, was lower than the national average of 9.1 percent.

Bankruptcies are another story. Analysts had expected an increase in the amount of Americans filing for bankruptcy this year, and so far that hasn’t held true.

In June alone, there were 119,768 personal bankruptcy filings, which is a 5 percent decrease from the 126,270 filings recorded in June 2010. It’s also the sixth straight month of year-over-year filing decreases.

“The drop in bankruptcies for the first half of the year shows the continued efforts of consumers to reduce their household debt, and the overall pull back in consumer credit,” said ABI Executive Director Samuel J. Gerdano.

In complete disclosure, we must tell you that the number of bankruptcy filings did increase 4 percent from May to June of this year, but seeing the national average for the first six months of this year fall is a good indicator that the worst of the recession might be over.

Let’s hope so. Northern Illinois carries the second highest bankruptcy rate in the country behind California.

Are you considering filing for bankruptcy? Check out thebankruptcysite.org for information that might help.